Autumn Statement 2015: Awarding Organisation NCFE predicts further cuts to FE
Ahead of the 2015 Spending Review and Autumn Statement, Michael Lemin Policy Leader at national Awarding Organisation NCFE is predicting that the further education sector will continue to be negatively impacted as a result of the announcements due to be made by the Chancellor today.
Following the announcement of and extensive discussion around the apprenticeship levy, it is expected that the levy rate will be announced this afternoon.
Michael Lemin says: “I believe that the rate will be set at around 0.3% - this would raise around £1bn. While it was initially expected to be higher, the CBI is a powerful lobby and will more than likely have strongly influenced the final decision on the levy rate.”
Those in the FE sector also anticipates that the Adult Skills Budget (ASB) – a continually suffering and unprotected budget – will again undergo serious cuts. Lemin comments: “It is widely expected that all learners who are 19 years old or older will have to take out a learning loan to fund any study. This is likely to be for all courses at Level 3 or above, and possibly even at Level 2 or above. There have also been rumours of a lifelong learning loan, which can be drawn down in bitesize chunks over a learner’s lifetime, but I would be surprised to see this announced at the present time.”
He continues: “In addition, we know that there are many challenges for FE colleges and sixth form colleges arising from the area reviews. The government wants apprenticeships to form the main part of colleges’ provision and, for this reason, it’s probable that we’ll see further cuts in this area. This will hit traditional FE provision hard which is obviously bad news for the sector.
“At NCFE we believe that vocational learning is more important than ever to both individuals and the economy – high quality vocational courses lead to proven employment opportunities, as they deliver the trained employees that businesses are looking for and provide individuals with the skills they need to succeed. We are disappointed to see the budget for adult education continue to shrink – lifelong learning is integral in an ageing population where people are retiring later and having multiple careers within their working life, and the potential loss of courses that upskill and keep the UK’s workforce competitive is a cause for concern.”
